Purchase order finance in South Africa.
You've landed a confirmed purchase order from a creditworthy buyer but can't fund the materials and labour to fulfil it. The lender pays your suppliers directly, you deliver, the buyer pays on the agreed terms, and the lender settles out of that payment minus their fee. Fulfilment risk sits with you; credit risk sits with the buyer.
Is Purchase-order finance a fit?
Green flags
- The purchase order is signed, with a creditworthy off-taker (corporate, government department, listed buyer).
- Gross margin on the order comfortably absorbs the PO finance fee (typically 3–8% per month).
- You've delivered orders of similar scale before — lenders price heavily on fulfilment track record.
Red flags
- The buyer's payment terms are vague or stretch past 90 days — PO finance costs can consume the profit.
- The order requires new capability (new machine, new staff) you haven't actually built — fulfilment risk is too high.
- You're relying on stacking multiple POs through the same financier without clearing prior advances.
Frank is building the purchase-order finance panel.
We’re actively adding lenders for this category. In the meantime, answer a few quick questions and we’ll reach out as soon as a relevant match goes live — or introduce you to adjacent options on the current panel.
Start the questionnaireFAQ
What is purchase-order finance in South Africa?+
You've landed a confirmed purchase order from a creditworthy buyer but can't fund the materials and labour to fulfil it. The lender pays your suppliers directly, you deliver, the buyer pays on the agreed terms, and the lender settles out of that payment minus their fee. Fulfilment risk sits with you; credit risk sits with the buyer.
Who does purchase-order finance typically fit?+
The purchase order is signed, with a creditworthy off-taker (corporate, government department, listed buyer). Gross margin on the order comfortably absorbs the PO finance fee (typically 3–8% per month). You've delivered orders of similar scale before — lenders price heavily on fulfilment track record.
How fast can I get purchase-order finance?+
Speeds vary by lender — anything from same-day to a few weeks. Frank shows you the typical decision time per lender on the panel, and your specific application can go faster or slower depending on the docs you already have in hand.
Do I need to be registered with CIPC?+
Most SA lenders want to see a registered entity (PTY or CC) that's been trading for a minimum period — usually 6-12 months, occasionally less. Sole traders have fewer options, but Frank still shows what's available.
Does Funded by Frank charge a fee?+
No. Frank is free to use for businesses. We earn a referral fee from the lender if your application is successful — that doesn't change the rate or terms you get from them.
Is Funded by Frank a registered FSP?+
No. We're a funding guide — we explain products and introduce you to lenders. We do not provide financial advice as defined by the FAIS Act. Any credit agreement is directly between you and the lender.
Other funding types
Not sure if this is the right fit? Let Frank walk you through it.
Answer a few quick questions about your business and Frank will show the funding shapes that typically fit — with the lenders who offer them.
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